DHFL war to bring code of conduct for lenders at IBC

NEW DELHI: The high-profile bidding war between Piramal Group and Oaktree Capital over beleaguered Dewan Housing Finance may have had an unintended consequence--a new code of conduct for committees of creditors under the Insolvency and Bankruptcy Code.

The Insolvency and Bankruptcy Board of India and the Reser ve Bank of India are considering draf ting a code of conduct for committees of creditors to ensure that timelines under the bankruptcy code are followed in letter and in spirit.

"While DHFL (Dewan Housing) is a high-profile case, even in some of the other lesser known cases, there have been instances where biases of lenders have been clear about who they prefer to take over the asset," one of the sources told Informist.